A Competitive Firm Facing a Perfectly Elastic Demand Curve Can

question 72

Multiple Choice

A competitive firm facing a perfectly elastic demand curve can:

• A) increase price without losing any sales.
• B) sell all of its output at any price it chooses.
• C) sell all of its output at the market price.
• D) sell more output only by reducing its price.

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Definitions:

Quantifier-Negation Rule

A principle in formal logic that deals with the relationship between quantifiers and the negation of statements.

Quantifier

A symbol or word in logic that specifies the quantity of specimens in the domain of discourse that satisfy an open formula.

Negation

The contradiction or denial of something, or the operation of inverting the truth value in logic.

UI

An abbreviation often standing for "User Interface," which refers to the means by which a user interacts with a computer, website, or application.